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15/06/2012

Business news : Vans Targets $1 Billion Growth in Revenues and Reveals New LXVITM Product Line

Vans at an investors meeting provided details on its strategy to add $1
billion in revenues over the next five years. Growth in the Americas,
representing about 70 percent of total revenues
in 2011, will account for nearly half of the anticipated growth, with a
key focus will be expansion outside Vans’
core West Coast market. The action sports brand also unveiled new line
of LXVI footwear, a shoe geared more toward the athletic customer.

At an investor meeting held at the House of Vans in Brooklyn, N.Y. – a
24,000 square-foot skatepark and event space – Vans announced that it
expects revenues to reach $2.2 billion by the end of 2016, representing
an annual growth rate of 13 percent. Vans is a wholly-owned subsidiary
of VF Corporation (VFC).

"Having more than tripled its revenues
since being acquired in 2004, Vans is an amazing example of the power of
VF's business model that enables brands to grow profitably and globally
while protecting their unique cultures," said Eric Wiseman, VF
Corporation chairman and chief executive Officer. "Our investments to
grow Vans across a variety of platforms – product innovation, geographic
expansion and direct-to-consumer – have provided us with a very strong
foundation to support its next chapter of growth."

Vans President
Kevin Bailey underscored the importance of the brand’s rich heritage
and authenticity in achieving its growth plans. "Since 1966, we have
been focused on building products that enable creative self-expression.
From our first skate shoe to today's announcement of the LXVI line, Vans
defines “Off the Wall” youth culture. Generating increasingly more
powerful connections with our consumers while leveraging the substantial
resources of VF will drive our growth in both established and emerging
markets, adding $1 billion in new revenues by 2016.”

Geographic Growth

Vans
expects substantial growth in each major geographic region during the
next five years. Growth in the Americas, representing about 70 percent
of total revenues in 2011, will account for nearly half of the
anticipated $1 billion in revenue growth. With balanced growth across
both wholesale and direct-to-consumer channels, a key focus will be
expansion outside Vans’ core West Coast market. Major metropolitan areas
such as New York City and Mexico City, where Vans has demonstrated
great success, will be utilized as epicenters to drive brand awareness.

In
EMEA (Europe/Middle East/Africa), Vans expects to add $350 million in
revenues by 2016. This follows a year of exceptional growth in 2011 when
Vans achieved 55 percent constant dollar revenue growth in the region.
Building on successful strategic execution in the United Kingdom, Vans
outlined how investments in social media, traditional advertising and
grassroots events will serve as a catalyst to drive continued growth
across Europe.

Asia Pacific (APAC) is expected to be Vans’
fastest growth region with its largest opportunity concentrated in
China. Accounting for 8 percent of the brand’s revenues in 2011, APAC
revenues are expected to nearly triple by the end of 2016, adding $170
million in growth.

Channel Growth

Vans’
growth over the next five years is expected to be balanced across both
wholesale and direct-to-consumer channels. Expected wholesale revenue
growth of $565 million over the period will be driven by healthy growth
in both footwear and apparel in conjunction with rapid wholesale door
expansion in the APAC region.

Vans’ direct-to-consumer business,
encompassing owned retail stores and e-commerce, should add $435 million
in revenues by 2016. E-commerce is expected be Vans’ highest percentage
growth channel, increasing nearly 40 percent annually and adding $100
million to revenues over the next five years. To showcase the brand’s
wide array of footwear and apparel products, culture and imagery, Vans
will continue to expand its retail stores, with plans to add more than
200 stores to its existing base of 310 stores.

Product Innovation – Vans Introduces LXVITM Line

Vans
also revealed its new line of LXVI footwear, which features several new
construction advances that result in a lightweight, flexible
architecture that maximizes comfort and fit for the action sports
enthusiast. Specific new innovations include:

Vans
LXVI footwear debuts with five innovative designs including, the
lightest Vans shoe ever, Graph; the mid-top Secant; the all-terrain
Inscribe; the modern Variable; and the unique Ortho. The product, with
prices starting at $70, is expected to launch globally the last week of
June at select Foot Locker (FL) locations, select specialty lifestyle
retailers, select Vans retail stores and at www.vans.com.

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